NTPC Green Energy’s Rs 10,000 Crore IPO to Open on November 19, 2024

NTPC Green Energy, the renewable energy subsidiary of NTPC Ltd,  is coming up with Rs.10,000 crore initial public offering (IPO), set to open for public subscription on November 19, 2024, and will close on November 22, 2024. The price band for the IPO has been set at Rs.102-Rs.108 per share, with anchor investor bidding commencing on November 18, 2024. The issue is a fresh equity issuance with no offer-for-sale (OFS) component.

Fund Utilization

The proceeds from the IPO will primarily address the debt of NTPC Renewable Energy Ltd (NREL), a wholly-owned subsidiary. Out of the Rs.10,000 crore raised, Rs.7,500 crore will be utilized for debt repayment, while the remaining amount will cater to general corporate expenses. As of July 2024, NREL’s consolidated borrowings stood at Rs.16,235 crore, bringing out the importance of this fundraising.

Investment Details

Retail investors can bid for a minimum lot size of 138 shares, amounting to Rs.14,904, with a maximum investment of Rs.1,93,752 for 13 lots. The IPO allocation has reserved 75% of shares for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 10% for retail investors.

NTPC Green Energy has further allocated Rs.200 crore worth of shares for its employees, offered at a Rs.5 per share discount to the final issue price. Additionally, Rs.1,000 crore worth of shares are reserved for existing shareholders. 

Financials

The company has shown financial growth, with Rs.1,962 crore in revenue and Rs.344 crore in net profit for FY24. In Q1FY25, it reported a revenue of Rs.578 crore and a net profit of Rs.138 crore.

Conclusion: NTPC Green Energy’s IPO brings in an opportunity for investors to participate in India’s growing renewable energy sector. With its financial performance, operational capacity, and strategy to address debt and growth, the company seems positioned for the long term. The shares will debut on the BSE and NSE on November 27, 2024.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.